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Problem 12-7 Payback method [LO12-3] Assume a $90,000 investment and the following cash flows for two alternatives. Year-Investment X $25,000 30,000 20,000 30,000 25,000 InvestmentY
Problem 12-7 Payback method [LO12-3] Assume a $90,000 investment and the following cash flows for two alternatives. Year-Investment X $25,000 30,000 20,000 30,000 25,000 InvestmentY $30,000 35,000 30,000 a. Calculate the payback for investment X and Y (Do not round intermediate calculations. Round your answers to 2 decimal places.) Investment X year Investment Y yea b. Which altenative would you select under the payback method? O Investment X O Investment Y
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